Deutsche Bank’s Mayer Sees ECB Intervention Talk Continuing

By Angela Cullen and Linda Yueh -
Dec 9, 2011

Thomas Mayer, chief economist at
Deutsche Bank AG (DBK) in Frankfurt, expects the debate about European
Central Bank intervention to settle the sovereign-debt crisis to
continue even after last night’s “fiscal compact” accord by
political leaders in Brussels.

“I’m a bit skeptical that the markets will come around as
smoothly as Mr Draghi was hoping they would,” Mayer said in an
interview with Bloomberg Television today, referring to ECB
President Mario Draghi. “I think we’ll probably see more near-
term tension and that will probably then trigger a more hands-on
intervention by the ECB.”

Mayer said that European Union leaders “have now defined
the endpoint they want to reach in terms of fiscal governance.
But it’s a long way to go there.” Nor does the accord solve the
immediate crisis, he said.

“We don’t know how to get there,” he said. “The bridge
has not been built.”